The Impact of Privatization on the Earnings of Restructured Workers: Evidence From the Oil Industry

We study the long-term impact of job displacement from a big state owned enterprise as a result of its privatization in a developing country. Our results suggest large reductions in earnings, which persist throughout the years. However, we also find that the displaced worker’s post-displacement earnings are in line with competitive market wages, and unrelated to sector of employment or to tenure losses, indicating that the long-term reduction in earnings as a result of displacement because of privatization can be traced to the loss of wage rents. Our results indicate that job displacement in SOEs may have very large redistributive implications for the workers involved but that this loss does not necessarily reflect the loss of specific human capital associated to these jobs.

Does Public or Not-for-Profit Status Affect the Earnings of Hospital Workers?

This paper examines the earnings differentials among hospital workers in the public, private nonprofit, and private for-profit sectors. Utilizing data from the 1995 through 2007 Current Population Surveys, unadjusted earnings are highest in the private nonprofit sector and lowest in private for-profit firms. Once measurable characteristics are accounted for, health practitioners in for-profit and nonprofit hospitals earn similar wages while public sector workers earn small but significant wage penalties. Nonprofit hospitals tend to attract workers with higher levels of skill as measured by schooling and potential experience. This could be explained in part by worker sorting and lower cost containment incentives in nonprofit hospitals. Wage change analysis using pooled 2-year panels constructed from the CPS indicate no significant differences in earnings between the three sectors of employment. Whatever the role of the sector of employment on the overall earnings of hospital workers, there is sufficient worker mobility within the industry to largely eliminate systematic wage differences across type of hospital.

Labor Supply Decisions of Disabled Male Workers

We use unique survey data, collected by the Workers’ Compensation Board of Ontario, to estimate the labor supply response of disabled male workers to benefit payouts and their post-injury wage. Our data enable us to fill gaps in the existing literature by estimating the hours as well as the return-to-work response for younger as well as older workers, based on objective rather than subjective self-reporting of disability status. Our results suggest a strong positive incentive effect from higher wages a and that lump-sum benefit payouts that are not reduced if earnings increased generally do not have adverse incentives on the return-to-work and hours decision, except for an income effect over the longer life cycle of younger men. We also discuss the policy implications of our estimates.

Do Reservation Wages Really Decline? Some International Evidence on the Determinants of Reservation Wages

Using cross-country data, we investigate the determinants of reservation wages and their course over the jobless spell. Higher unemployment benefits lead to higher reservation wages. Further, again consistent with the basic search model, repeated observations on the same individual provide scant evidence of declining reservation wages.

The Experience-Earnings Profile: Productivity-Augmenting or Purely Contractual? Evidence from the UK

We test the human capital interpretation of the experience-earnings profile. Does the upward sloping portion of the experience-earnings profile reflect on-the-job training which in turn causes the experience-productivity profile to slope upwards, or do purely contractual factors determine the nature of life-cycle earnings. Herein, we provide additional evidence on the relationship between productivity and earnings by examining earnings differentials in the UK academic labor market for economists. Using a test first suggested by Mincer, we find that the empirical results are consistent with human capital theory. We find that, although the positive relationship between earnings and experience persists when individual productivity measures are included in the salary equations for lecturers and senior lecturers, the positive relationship becomes statistically insignificant when the same productivity measures are included in the salary equations for professors. For lecturers and senior lecturers, the experience-salary profile properly reflects the structure of the national pay scale rather than variations in individual research productivity. At the professor level, where individual salaries are not determined by a pay scale, the data support the human capital explanation of the positive experience-earnings profile.

The working spouse penalty/premium and married women’s labor supply

Using data drawn from the Current Population Surveys, this paper provides a consistent explanation for why the presence of a working wife reduces the husband’s wage among managers, but increases the husband’s wage among non-managers. It is not husband’s occupation per se but rather the distribution of husbands’ wage levels that underlies the working spouse penalty or premium. Positive correlations in earnings between married couples that arise from assortative mating make the cross-wage effects of the husbands’ wages on the wives’ hours of work first positive, then negative in cross-sectional data. The phenomenon of a working spouse penalty/premium is simply the flip side of this relationship.

The Relative Earnings of Contingent Faculty in Higher Education

Part-time and full-time non-tenure-track faculty currently represent almost half of all faculty in U.S. higher education, yet little is known about their earnings relative to traditional tenure-track faculty. I find that full-time non-tenure-track faculty earn approximately 26% less per hour from their academic institution and 18% less in total earnings from all sources per hour than comparable tenure-track assistant professors. Part-time non-tenure-track faculty earn 64% less per hour from their institution, but only 1% less in total earnings per hour, than tenure-track assistant professors.

Economic Status of Older Asians in the United States

Data from the 5-percent Census 2000 Public Use Microdata were utilized to examine the economic status of six Asian-only groups in the United States aged 65 and older. Japanese Americans’ economic status emulated that of older Whites; whereas, older Korean and Vietnamese economic status more closely resembled that of older Blacks. Regression results indicated that education, household size, and duration of immigration were significantly and positively related to household income for most of the Asian-only groups, supporting the theory that human capital, structural barriers, and acculturation all play a role in determination of household income for older Asian Americans.

Marriage,partnership and sexual orientation: a study of British university academics and administrators

Using a unique data source on marital status, partnership and sexual orientation of academics and administrators at British universities, we estimate the impact of personal relationships upon earnings for men and women. While university data cover a relatively homogeneous group of workers, the two sides of the university are very different, with administrative jobs being more like the general job market in the economy. We find a large and significant married male premium, but only on the administrative side of the university. There is no female marriage premium, and no partnership return to gay men or to either heterosexual or homosexual women.

The Evolution of Skill-Biased Effects on American Wages in the 1980s and 1990s

This study estimates the contributions of skill-biased technological change and international trade to the rise in the skill premium during the 1980s and 90s using the Feenstra and Hanson (Q J Econ 114(3):907–940, 1999) two-stage methodology. Newly available data on high-technology capital provide separate measures of computer and software investment. New estimates suggest that investment in software contributed to a substantial portion of the observed increase in the skill premium while investment in computers lead to a reduction in the rate of skill premium growth. Contrary to the findings of Feenstra and Hanson for the 1980s, neither software nor computers had a significant effect on wages during the 1980s. Foreign outsourcing does not appear to have significantly affected wages during the 1990s. The contribution to theory is that software is more complementary to increases in worker productivity due to human skills. Computers, on the other hand, reduced the growth of wage inequality by giving unskilled labor a more efficient set of tools with which to work.

The Decomposition of Firm-size Wage Differentials

No completely satisfactory explanation for the persistent and well-documented large-firm wage premium has been found. I use a novel adaptation of the Oaxaca/Blinder wage discrimination model to examine the firm-size wage differential which allows the wage differential to be decomposed into the portions attributable to (1) differences in employee endowments, (2) how the firm values these endowments, and (3) residual differences. Small firms actually pay higher wages based on how they value their workers’ endowments, but this wage premium was overshadowed by the superior endowments of workers in large firms and a residual differential in favor of large firms.

Earnings,Effort, and Work Flexibility of Self-Employed Women and Men: The Case of St. Croix County,Wisconsin

Data collected on self-employed women and men in one county allow examination of work effort, housework effort, housework hours, and preference for flexible work on earnings. Regressions indicate housework effort of self-employed women contributes to their lower earnings. Housework hours do not supporting the view women select self-employment to find flexible work. Housework hours do reduce the earnings of self-employed men, which could reflect their stronger commitment to housework combined with less flexible work. A Oaxaca decomposition suggests less tenure and greater housework effort are important contributors to lower earnings of self-employed women. Ranges that measure earnings may contribute to the insignificance of work effort, normalized work effort, and preference for flexible work hours. (J16, J23)

Human Capital,Social Support,and Economic Well-being among Rural,Low-income Mothers: A Latent Growth Curve Analysis

The purpose of this study was to better understand human capital and social support in the long-term economic well-being of rural, low-income mothers in the US. Three waves of data from a multi-state, longitudinal investigation tracking the well-being of rural families, known as “Rural Families Speak,” were used to test two latent growth curve models of economic well-being. Results indicated that human capital alone is not a good predictor of economic well-being over time for this sample. A model of economic well-being that includes both social support and human capital provides a better fit for these data. Findings suggest that social support is a key contributor to long-term economic success for this sample. Implications for public policy are presented.

Efficiency Wages,Productivity and Simultaneity: A Meta-Regression Analysis

This study reports a meta-analysis of 75 estimates of the efficiency-wage effect. It reveals a strong efficiency-wage effect that depends upon whether researchers control for potential simultaneity between wages and productivity. Studies that control for simultaneity tend to report stronger effects. Clear evidence of publication selection is also found. E24, J30.

Making Sense of Organizational Change: Voices of Older Volunteers

The role of voluntary and community sector organizations in the delivery of public services is increasing and these changes bring new responsibilities and benefits to organizations that have the capacity to participate. There are concerns within the sector about the implications for citizenship and participation. The sector is highly dependent on volunteers yet little is known about how organizational change in response to new relationships with the statutory sector impact upon the commitment and well-being of people who volunteer. This paper addresses that gap in knowledge for older volunteers. Drawing upon collaborative research with a voluntary organization in the north of England, the authors explore the meanings and aspirations of volunteering for older people, and explain how and why changes associated with closer engagement with public service delivery and less grant dependency can be disempowering for them.

Path to Poverty Alleviation: Marriage or Postsecondary Education?

We examined the role of human capital in determining economic well-being and marital status of mothers with children. We analyzed 1996 data from the Survey of Income and Program Participation (SIPP), a nationally representative survey of 36,700 American households conducted by the Census Bureau. The results indicate that among the human capital variables postsecondary education significantly improves the economic well-being of mothers irrespective of their marital status. Also, educated mothers are more likely to be married. These findings are especially relevant as we debate the importance of marriage in poverty alleviation.

Home production and wages: evidence from the American Time Use Survey

Using data from the American Time Use Survey for the years 2003–2006, this paper finds that housework has a negative relation with wages for both women and men. The negative relation between housework time and wages is not likely to arise from omitted working conditions that are correlated with housework, nor from omitted effort. For women, the negative relation between housework and wages appears in most occupations, including professional and managerial occupations. The connection of housework time to the ‘lack of interest’ argument proposed by defendants in class action sex discrimination cases is examined and is not supported by the evidence.

The economics of gay and lesbian couples: Introduction to a special issue on gay and lesbian households

This article presents a simple conceptual framework integrating three couple-related outcomes analyzed in this volume: wage differentials in earnings related to couple formation, household formation (including cohabitation and registration as Registered Domestic Partnership), and intra-household allocation of income. It also discusses some of the articles’ main findings.

Earnings Differentials of Seafarers

I investigate the earnings differentials among union and nonunion seafarers, across seafarer occupations, and with respective to other transport operatives. The empirical results suggest that the union and nonunion weekly earnings of captains/mates are comparable, and the union earnings gap for sailors/deckhands is positive. The union (nonunion) weekly earnings of captains/mates are 14.7 (30.5) percent greater than those of sailors/deckhands; the union weekly earnings of captains/mates (sailors/deckhands) are 12.6% greater (9.5% less) than those of truck drivers; and the nonunion weekly earnings of captains/mates (sailors/deckhands) are 33.0% greater (6.2% less) than those of truck drivers. The sailor/deckhand and truck driver earnings differentials are contrary to the general belief that the earnings of truck drivers are less than those of other operative occupations involved in transporting intermodal cargo.